Big News for Central Govt Employees: One-Time Option to Shift from NPS to UPS for Better Pension Security

New Delhi, June 24, 2025 — If you're a central government employee enrolled under the National Pension System (NPS), here’s a rare opportunity you can’t ignore. The government has officially offered a one-time switch from NPS to the newly introduced Unified Pension Scheme (UPS) — a move aimed at providing employees with greater retirement stability, transparency, and fixed pension benefits.

Let’s break down what this transition means, who is eligible, and how you can opt in before the deadline.

📌 What Is UPS and Why Is It Being Offered?

The Unified Pension Scheme (UPS) is the government’s new retirement policy designed to replace NPS for those who opt in. It provides:

• Fixed monthly pension post-retirement

• Gratuity benefits similar to the Old Pension Scheme (OPS)

• Guaranteed income security, irrespective of market fluctuations

• Enhanced transparency and simplicity in post-retirement planning

This move comes after years of demand from government employees for a more reliable pension model, especially for those concerned about the market-linked volatility of NPS.

🧾 Who Can Opt for the UPS Switch?

According to the Ministry of Personnel and Pension Affairs, this one-time migration is open only to central government employees who:

• Joined on or after January 1, 2004, and are currently under NPS

• Are still in active service (not retired or resigned)

• Have not already claimed full pension or opted out of NPS earlier

This initiative is especially beneficial for employees nearing retirement who want a guaranteed post-service income.

📲 How to Switch from NPS to UPS: Step-by-Step

Employees interested in shifting to UPS must complete the process via the e-NPS portal. Here's how:

1. Visit the official e-NPS portal: https://enps.nsdl.com

2. Log in using your PRAN (Permanent Retirement Account Number) and password

3. Go to the "Pension Scheme Transition" section

4. Select “Opt for UPS”

5. Fill out the application form and upload required documents (service certificate, Aadhaar, etc.)

6. Submit your application online and await departmental verification

Note: Once you opt for UPS, the choice is irreversible.

💡 What Happens to Gratuity and Existing NPS Corpus?

• Upon successful transition, your NPS contributions will stop

• The existing NPS corpus may be transferred to the consolidated UPS fund or managed as per government instructions

• Gratuity benefits under UPS will be calculated as per old pension norms

• You'll start receiving fixed monthly pension post-retirement based on service years and last drawn salary

📅 What’s the Deadline?

The government has not yet finalized the last date, but officials suggest the window for application is limited to 90 days from the date of official notification (already active). So, it's advisable to act promptly and consult your department's pension officer if needed.

🧠 Should You Switch?

If you're someone who:

• Prefers security over market returns

• Is closer to retirement

• Wants to avoid the uncertainties of fund-based pension schemes

Then UPS could be the better long-term bet for you. However, younger employees or those who are comfortable with market-linked returns and flexibility may choose to stay with NPS.

📝 Final Thoughts

The government’s one-time NPS to UPS switch is a significant move in the direction of employee welfare. With the Unified Pension Scheme offering more stability, guaranteed returns, and a simple structure, it’s a decision worth serious consideration.

Evaluate your needs, check your eligibility, and make your move before the deadline closes.